and punches in parliament. what touched off this brawl amongst laurnls in ukraine? captioning funded by cbs this is the "cbs morning news" for friday, december 14, 2012. maybe congress should give that a try. good morning, everybody. i'm terrell morning. president obama and speaker john boehner have met trying to hammer out a deal on the fiscal cliff. the discussion was described as frank. the president is apparently holding firm on taxing the wealthy and there are signs of dissension among the republican ranks. susan mcginnis starts us off this morning. susan, good morning to you. >> hi. good morning, terrell. the two men met for less than an hour, and that's not an encouraging sign. neither of them spoke during the meeting but what we heard before and after is neither side is budging on their core decisions, this as time to make a deal grows shorter.

house speaker john boehner made the short trip up pennsylvania avenue to the white house thursday to talk to president obama about the fiscal cliff. the tax hikes and spending cuts set to kick in january 1st. they met for nearly an hour. both sides describe the discussion as frank. >> i think speaker boehner has a contentious caucus. >> the president wants to pretend that spending isn't a problem. that's why we don't have an agreement. >> president obama insists on raising taxes on the top 2% of earners, but even he recognizes that's a tough sell. >> the idea of not raising taxes has become sort of a religion for a lot of members of the republican party. >> speaker boehner accuses the president of dragging out negotiations. >> unfortunately the white house is so unserious about cutting spending that it appears willing to slow-walk any agreement and walk our economy right up to the fiscal cliff.

>> here on capitol hill speaker boehner joined many of his colleagues in taking a long weekend off, frustrating those who want all of congress to keep working until a deal is done. >> two two-day workweeks in a row. this is just not right. how does this make sense? >> reporter: >> but even if congress stays in town, it probably will not help with only president obama and speaker boehner the only two parties negotiating. >> most of us here are not in the loop of what they are discussing. >> as of this morning, they're not scheduled for any more talks. now, more and more republicans say the party may be better off giving up this fight on taxes, possibly engaging now in a larger battle next year when the debt ceiling is going to need to be raised and they're going to need leverage. that happens late february, next year. >> susan mcginnis, thank you so much. u.n. ambassador susan rice meets with president obama today, her first face-to-face

since withdrawing as candidate for secretary of state of state. tara mergener reports. >> reporter: united nations' ambassador susan rice will not be the next secretary of state. rice withdrew her name thursday considering she'd face an uphill fight with senate republicans. she said this to nbc news. >> because i didn't want to see a confirmation process that was very prolonged, very politicized, very distracting, and very disruptive. >> reporter: gop lawmakers are upset over rice's explanation on the coordinated terrorist attack on the consulate in benghazi libya. the assault killed ambassador christopher stevens and three others. >> we did not have information at present that leads us to c n conclude this was premeditated

or preplanned. >> reporter: arizona not john mccain led the charge saying rice and mislead the nation. >> it is clear the information she gave was incorrect. >> while the president never nominated rice to replace the outgoing hillary clinton as secretary of state, she was clearly his top pick. he even lashed out at his gop opponent suggesting they were in for a bigger fight. >> when they go after the u.n. ambassador apparent lay because they think she's an easy target, then they've got a problem with me. >> but in the end the gop hit their target. rice bowed out and the president accepted it. speculation on who he will nominate now focuses on massachusetts senator john kerr where who heads the senate foreign relations committee. tara mergener for cbs news, the white house. after she withdrew her name, rice tweeted, those who know me know that i am a fighter but not at the cost of what's right for our country. i don't do this work for me, rice tweeted. i do it because i believe in president obama's approach to

the world, and i want to get things done. today is the deadline for states to decide whether or not to run their own insurance exchanges called for in the president's health care overhaul law. six states are undecided. 19 states have decided not to run their own health insurance markets and will instead rely on the federal government. all of those states are led by republican governors. cbs news has learned that secretary of defense leon panetta has signed two orders for aircraft missiles to go to turkey. four will accompany to defend against rocketh atangs against syria. and for the first time he spoke about intelligence that led to concerns that the assad regime was considering using chemical forces. panetta said there were clear indications that they were

assembling weapons for using deadly sarin gas. >> panetta said the intelligence leveled off and there are no new indications that assad is planning to take the next step. tomorrow the egyptians will begin voting on a new constitution. last night in cairo supporters and opponents of morsi fought in the streets. the new constitution was written by morsi's islamist supporters. it will divide the nation, but the measure is expected to pass. back in this country southern california's in store for another day of high tides and flooding. the so-called king tides are the highest tides of the year formed by the alignment of the sun, moon, and architect. low-lying communities along the pacific coast highway were flooded. in some areas the tide reached seven feet.

we'll take a quick break on a friday. when we come back, political in-fighting. a brawl breaks out for a second day on the floor of the parliament. this is the "morning news." ing news. for months, i had this deep pain all over my body. it just wouldn't go away. my doctor diagnosed it as fibromyalgia, thought to be the result of overactive nerves that cause chronic widespread pain. lyrica is believed to calm these nerves. i learned lyrica can provide significant relief from fibromyalgia pain. and for some people, it can work in as early as the first week of treatment. so now i can plan my days and accomplish more. lyrica is not for everyone. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior, or any swelling or affected breathing or skin,

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democracy can be messing. i call this democracy in action. on thursday a fight broke out in ukraine's newly elected parliament as it did the day before. opposition deputies physically tried to block a vote over the election of a parliamentary official on thursday. it did not work. the man ended up getting the job anyway. fiscal cliff, maybe there's an idea. "cbs moneywatch" time now on a friday. and if you need a cab in new york city, there may soon be an app for that. erica ferrari here in new york with that. erica, good morning to you. good morning, terrell. a new report showing growth in china's manufacturing sector lifted most asian stocks. hong kong's hang seng gained more than half a percent.

tock owe's nikkei shed a fraction. concerned about washington's fiscal talks pushed wall street stocks lower. the dow finished down 74 points on thursday. the nasdaq lost 21 points. swiss bank ubs is said to be in talks to pay a $1 billion fine to settle allegations of rigging a key interest rate benchmark. ubs is accused of manipulating the libor to boost trading profits. the rate affects trillions of dollars and loans including mortgage rates. barclays paid a $450 million fine to settle similar allegations last june. consumers are spending more, but the results are mixed for retailers. the commerce department said on thursday that retail sales increased 0.3 in the month of november from the month before. the increase is due in part to hurricane rebuilding in the northeast. the report says online shopping surged, but department store sales declined. in new york, raising your

arm in the middle of the street and yelling "taxi" may soon be passe. the new way to get a cab, maybe with a smartphone app that's being tested. the passenger would use the app to request a ride. the first cab driver who responds to the call from their cell phone gets the ride. similar programs are in use in other cities. and you might not know the name, but you have seen unique label that norman woodland developed with another engineer. the rectangle found on just about every product we buy. they got a patent for their invention 60 years ago, but the technology to use the bar code was not developed until 1974. norman woodland was 91 years old. terrell? >> erica ferrari here in new york. thank you so much. coming up next, your friday morning weather and in sports, he may have gotten a high risk but a high reward. baseball star josh hamilton inks a massive free agent deal. free agent deal. (all) the gulf!

it doesn't matter which of our great states folks visit. mississippi, alabama, louisiana or florida, they're gonna love it. shaul, your alabama hospitality is incredible. thanks, karen. love your mississippi outdoors. i vote for your florida beaches, dawn. bill, this louisiana seafood is delicious. we're having such a great year on the gulf, we've decided to put aside our rivalry. now is the perfect time to visit anyone of our states. the beaches and waters couldn't be more beautiful. take a boat ride, go fishing or just lay in the sun. we've got coastline to explore and wildlife to photograph. and there's world class dining with our world famous seafood. so for a great vacation this year, come to the gulf. its all fabulous but i give florida the edge. right after mississippi. you mean alabama. say louisiana or there's no dessert. this invitation is brought to you by bp and all of us who call the gulf home.

here's a look at the weather here's a look at the weather in some cities around the country. partly sunny in miami, 80 degrees. morning mist and showers in dallas, 60. mostly misty in l.a. 63 degrees. let's check the national forecast. the powerful storm will bring rain into washington state and northern arizona and southwest colorado. showers are likely for the east coast of florida. otherwise the south will be dry and warm for the most part.

to the northeast will be sunny and dry. the mideast, midwest will be dry, but late-day showers are expected across the central plains. in sports this morning, baseball's most coveted free agent is switching teams and heading for a division rival. los angeles angels signed josh hamilton to a five-year, $125 million contract. hamilton has spent the last five seasons with the texas rangers. in that time he's hit 142 hom r runs and won the american league mvp. some have called hamilton a risky signing. earlier in his career he struggled with drug and alcohol addiction. last year they handed albert pujols a ten-year $240 million deal. cincinnati bengals are pushing to make the playoffs for just the fourth time since 1990. the philadelphia eagles are staggering to the end of the season. nothing seems to be going right for philly this year. one of the bengals' helmets got stuck on a face mask.

eagles leading the bengals in the second half, and then the wheels come off. an andy dalton touchdown run. cincinnati gets the brown fumbles the ball, and the eagles brings back a score. cincinnati rips off 24 straight points to win this one, 34-13. in the nba the red-hot knicks beat the ice cold lakers in new york city. carmelo anthony dominating in the first half, scores 22 points in the first quarter and 30 in his first 23 minutes of action, and then this happens. take a look. melo takes a hard foul going to the rim. he injuries his ankle, would not come back. by that point, the knicks were up big. they go on to win it, 116-107. the feds are weighing in on the nhl at the highest level. president obama even had a message for both sides. >> if you can figure out how to spread out a bunch of revenue

you're bringing in, but do right by the people who support you, and, you know, i shouldn't have to be involved with a -- in a dispute between really wealthy players and even wealthier owners. >> this is the third lockout under commissioner gary bettman. this latest work stoppage has wiped out 43% of the nhl's schedule. when we come back, another look at this morning's top stories, and improving the student body. a look at how one school is fighting the growing problem of obesity.

the flames are out... but c say... a threat remains. plus: personal police escort a bay area bart station. the push to keep you safe this holiday season. and stepping aside. preside obama's top pick for secrety of state is out of the runn why u-n ambassador susan ri says she had to withdraw her name. join us for cbs 5 eyewitness news this morning... beginng at 4:30.

,,,, here's a look at here's look at the weather. washington, 55 degrees. partly sunny in st. louis, 54. part showers denver, 44, and seattle, 43 degrees. top stories now on a friday morning. president obama and speaker john boehner met last night at the white house to discuss the

fiscal cliff. it was their second meeting in five days. the discussion was described as frank, but no progress was reported. and u.n. ambassador susan rice says she withdrew as a candidate for secretary of state because it was the best thing for the country. rice has been under heavy criticism before republicans for an official explanation for the attack on the u.s. consulate in libya. a new study in the medical journey suggests that obesity is killing three times as many people around the world as malnutrition. in missouri one high school looked at the problem of overweight kids and is doing something about it. seth doan reports. >> hi, brandy, how are you? >> reporter: spend a minute in the nurse's office at truman high school in independence, missouri, and you'll immediately notice something troubling. what problems are you seeing? >> we see type 2 diabetes, high blood pressure, people with joint pains, arthritis, stress, anxiety, depression from being above a healthy weight.

>> reporter: the school nurse told us that 40% of students at truman high were overweight or obese. two years ago she was part of a districtwide program to test students' body fat. >> it's very concerning to see that they're dealing with adult illnesses at such a young age, and you just worry about where they're going to be in the future. >> we have a major issue with kids because of what they're eating, what they're not eating, the lack of exercise. this is a crisis in our country. >> reporter: a crisis that school superintendent jim hinson saw was undermining his school in absenteeism and lower test scores. he attacks the problem with mandatory nutrition classes in classes k through 12. now they record students' physical level and in the cafeteria chicken that was fried is now baked and salads are always on the menu.

>> toffee, how are you today? >> i didn't sleep that well last night. >> reporter: 17-year-old suffers from the same weight-induced asthma that killed her father. >> i think surely but slowly the message will hit home and kids will start eating healthier, but like it's a team thing. like you can't do it by yourself. it's just so easy to fall back. >> reporter: in the last year she's made a start, losing 9 pounds so far. >> if kids can't be healthy, they can't be successful. so if we give them the tools they need in education, they can take it home. >> reporter: for the first time in history, the life expectancy of kids is less than ours. that has to change. >> reporter: at the district's grade schools, test scores are up and asthma cases are down and at truman high obesity rates have dropped 10% of over the last ten years. the changes they've made here are showing results. seth doan, cbs news, independence, missouri.

president obama celebrated hanukkah at the white house. he and the first lady held a reception last night. the sixth evening of the festival of lights. it's from the temple in long beach, new york. the temple was heavily damaged by hurricane sandy. i'm terrell brown in new york. this is this "cbs morning news." hurricane sandy. i'm terrell brown in new york. this is this "cbs morning news." ♪ [ male announcer ] with free package pickup from the u.s. postal service the holidays are easy. visit usps.com.

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across spain thursday, coordinated demonstrations were head in dozens of cities to protest cuts in education. it's part of austerity measures aimed at lifting the country out of diet dep. spain's recession is hurting the theater business, too, but as mark phillips reports, one owner found a way to sell tickets. >> reporter: other places, theatrical productions may be about drama and song. in spain right now, though, they're also about vegetables, specifically -- >> carrots. carrots. >> reporter: carrots. the humble root which may determine whether kym marsh's

theater in the town near barcelona lives or dies and a lot of others too. why? because the spanish government has recently just about tripled the sales tax on theater tickets and kym fears that no one would ever fill these seats, until he made a discovery whiles out shopping. the tax on carrots is 4%. >> 4%, yes. >> reporter: the tax on theater tickets -- >> 21%. >> reporter: 21%. kym marsh did the math. food for the body, 4% tax. food for the soul, 21%. there had to be a way to bridge the gap. there was. kym doesn't sell tickets now. he sells carrots, expensive ones. >> 15 euros, one carrot. >> 15 euros, one carrot. >> yes

>> 17 bucks for the carrot, you get the ticket for free. >> free. >> reporter: for every carrot you buy, you get a free ticket. >> okay. see? >> reporter: it's not really a laughing matter. theaters, movie houses around the country are all being hit by the new tax and are looking seriously at the carrot caper. why should they be hit, they ask, when sports entertainment like soccer is still taxed as a much lower rate. the tax man has. challenged the carrot loophole yet. if he does, kym has another idea. >> potatoes. >> reporter: on second thought, though, in a theater, maybe not. >> reporter: if they don't like the show, they can throw them. spain needs some thinking in getting out of this economic mess. kym marsh is providing some. mark phillips, cbs news, spain. coming up on your local news after "cbs this morning," more on susan rice dropping out of the running for secretary of

state. we'll get reaction from madeleine albright. plus, a company investing big by paying for all of their employees' college education. and "vanity fair" photographer jonathan becker looks back on 30 years of the magazine's photos, and also some tips for buying a new tv. that and more coming up a little later on "cbs this morning." that will do it for the "morning news" this friday. friday. happy friday. appreciate you watching. i'm terrell brown in new york. take care, everybody. have a great weekend. -- captions by vitac -- www.vitac.com

>> your realtime captioner: linda marie macdonald

hi, everyone and good morning. friday is finally here! it's december 14. she's smiling. i'm frank mallicoat. >> i'm michelle griego. time now is just about 4:30. lawrence, did you hear how frank said "friday "? >> friday!! exciting folks! you know, we have some cold weather out there now. some frost advisories up plus the possibility of some rain. we will talk about that and your weekend forecast coming up. >> that's right. and it is the friday morning commute. so far things are "friday light," we can't say it enough. so far, so good across the golden gate bridge. headlights making their way into san francisco. we just checked in with caltrans. there's still a lot of areas of overnight roadwork out there so we'll show you where the slow spots are coming up in a few minutes. we begin with some developing news. a strong earthquake in the ocean off baja, california. it happened at 2:36 this morning not long ago. the usgs says it was a 6.4 quake. thousands of people felt it near the us-mexican border but